Starbucks, was able to take a commodity like coffee and successfully differentiate it because, people feel that being able to afford Starbucks is a status symbol. Furthermore, brand loyalty and Starbucks reward program is also a reason why customers are willing to pay their prices. According to Reyhle (2016), “customer loyalty isn’t what it used to be. In fact, research company Access Development reported that 79% of customers would ta...
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...ars and as of 2008 became connected to the My Starbucks Reward program. The Starbucks Reward Program enables customers to receive benefits based on the number of reward points earned over a period of 12 months. Money is loaded on to the Starbucks Card and can be spent in Starbucks stores. Furthermore, the Starbucks card has grown in value in recent years, becoming an important source of revenue for the company” (p.10).
In conclusion, Farrell & Hartline (2014) states that “Starbucks had become one of the most widely recognized and admired global brands. Additionally, it has been able to successfully developed a devoted, local customer base. Consequently, it is understood that, businesses need to grow in order to maintain profitability. However, Starbucks should not veer too far off the path that made those customers similar to Benjamin, love them in the first place.
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